KOSPI May Slip Back Beneath 6,800 Points

(RTTNews) - The South Korea stock market bounced higher again on Monday, one session after ending the three-day winning streak in which it had jumped more than 215 points or 3.2 percent. The KOSPI now sits just above the 6,820-point plateau although it may hand back those gains on Tuesday.

The global forecast for the Asian markets is soft on renewed concerns over the conflict in the Middle East and the corresponding jump in crude oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference.

The KOSPI finished modestly higher on Monday as gains from the technology, automobile and financial sectors were capped by weakness from the airlines and semiconductors.

For the day, the index collected 31.14 points or 0.46 percent to finish at 6,820.02.

The lead from Wall Street is weak as the major averages opened firmly lower on Monday and stayed that way throughout the session.

The Dow dropped 374.09 points or 0.70 percent to finish at 53,185.90, while the NASDAQ sank 31.54 points or 0.12 percent to close at 26,370.89 and the S&P 500 lost 25.62 points or 0.33 percent to end at 7,686.14.

The weakness on Wall Street came on concerns about a re-escalation of the military conflict in the Middle East following a period of relative calm, contributing to a jump in crude oil prices.

Crude oil prices jumped on Monday as the U.S. recommenced attacks on Iran, stoking concerns of a broader re-escalation in the gulf. West Texas Intermediate crude for October delivery was up $2.24 or 2.69 percent at $85.64 per barrel.

The sharp increase in crude oil prices contributed to renewed worries about the outlook for inflation ahead of this month's Federal Reserve meeting. Treasury yields then moved higher on the day, with the yield on the benchmark ten-year note reaching its highest levels in over a year.

Closer to home, South Korea will provide preliminary August numbers for imports, exports and trade balance later this morning. Imports are expected to climb 24.7 percent on year, easing from 26.5 percent in July. Exports are called higher by an annual 62.6 percent after surging 63.0 percent in the previous month. The trade surplus is pegged at $30.70 billion, up from $30.39 billion a month earlier.